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Tax Question

Ive been worrying about how my checking account will affect my families tax return next year...we dont make much money & I havent worked since May '07 but I have $20,000 in my checking account that is meant for college, since its in a checking account I havent made any money off of it except like $6 in Im wondering if I will have to pay taxes on money that I havent gained any interest on - The money came from a 509 savings plan account that was in my ex-husbands name that we withdrew last year and put into my checking account, so taxes were already paid on it last year when we filed our taxes

Answer Question

Asked by Anonymous at 10:54 PM on Oct. 12, 2008 in Money & Work

Answers (3)
  • I used to work for a bank. If you collect $10 or more in interest that year, they will send you a form you have to claim. But the interest is your income, it doesn't go on the $ in the account, just what you got. so if you got $12 the whole year in interest, that's what the government would see as your income, not enough to worry about!

    Answer by flutterfae at 10:56 PM on Oct. 12, 2008

  • So when I file my taxes dont I have to have like my bank statement for the year? So wont they see that I have like $20k in my account that was just deposited one day and wonder where it came from??

    Answer by Anonymous at 11:02 PM on Oct. 12, 2008

  • It has already been taxed. You don't have to submit bank statements with your taxes. You are fine. Nothing to pay on, nothing wo worry about.

    Answer by Anonymous at 7:10 AM on Oct. 13, 2008

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